Thomson Reuters Trading Volumes Shed 10% in October, Still 21% Higher YoY

According to an official announcement, the total average daily volume (ADV) of foreign exchange trading across Thomson Reuters platforms has somewhat contracted in October when compared to the previous month. Totaling $373.7bln, the figure is lower by about 10% when compared to the record highs announced for September, but still higher by 21% when compared to a year ago.

The number aggregates trading volumes on Thomson Reuters Matching and FXall and includes all types of transactions - spot, forwards, Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, options and non-deliverable forwards (NDFs).

The spot FX ADV at Thomson Reuters dropped by 6% to $134.8 billion, remaining higher by 24% when compared to last year.

The company’s Global Head of FX, Phil Weinberg, explained in the company announcement, “We’ve been hard at work all year improving the capabilities we offer clients and have expanded our client footprint considerably as a result.”

“That means when times are volatile, we are in a position to help an ever expanding group of clients across multiple segments and geographies meet their overall FX Trading requirements in a variety of instruments which has resulted in the steady growth of Thomson Reuters in the FX space,” he explained.

While trading activity on the foreign exchange market didn't decline materially in October, especially with several retail brokers reporting higher numbers, the figures at Thomson Reuters are likely to remain solid in the near future as Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term remains intact.

The company announced earlier this month that Thomson Reuters Matching will deliver a set of new risk controls to prime broker banks which got Maximum Order Size and Maximum Open Orders functionalities on the Thomson Reuters Matching platform.